GENERAL MOTORS LLC Global Vehicle Safety
June 28, 2018 VIA EMAIL
Stephen Hench Trial Attorney, Litigation & Enforcement National Highway Traffic Safety Administration 1200 New Jersey Ave, SE, Room W41-227 USG 4760 Washington, DC 20590 NHTSA-2015-0055 Re: General Motors LLC’s Amended Request to Modify Certain Sufficient Supply and Launch Deadlines under Paragraph 39 of the Third Amendment to the Coordinated Remedy Order (the “Extension Request”)
Dear Stephen:
On August 25, 2017, GM requested, pursuant to paragraph 39 of the Third Amendment to the Coordinated Remedy Order (the “ACRO”), that NHTSA modify the Sufficient Supply and Launch Deadlines for the GMT900 vehicles covered by GM’s Inconsequentiality Petitions (the “GMT900 Vehicles”). Since that filing, GM and ZF (formerly TRW), GM’s replacement inflator supplier, have made substantial progress preparing to conduct a remedy campaign, if necessary, on the GMT900 Vehicles and in assembling a substantial bank of PPI3 guanadine nitrate replacement inflators—progress detailed in the October 16, 2017, January 2, 2018, and March 28, 2018 Sufficient Supply and Remedy Launch Certification Reports (the “Supply Reports”) that GM submitted to the Agency.
Drawing on repair-rate data from other GM recalls, including recalls of Takata airbag inflators, GM recently conducted an in-depth analysis of its readiness to launch a recall campaign on the GMT900 Vehicles. Based on this analysis, GM hereby amends its August 2017 Extension Request to account for the following facts and developments:
1. Priority Group Six GMT900 Vehicles
As of June 21, 2018, GM had approximately 486,000 replacement inflators in its warehouse in Pontiac, Michigan. Totaling approximately 2.5 million GMT900 Vehicles, Priority Group Six is the largest of the priority groups covered by GM’s petitions; the other three priority groups together total only 1.6 million vehicles. Even with a substantially larger bank of replacement parts, GM’s analysis indicates that launching all 2.5 million vehicles in Priority Group Six simultaneously could rapidly deplete GM’s bank, stress GM’s dealer network, and delay the launch of subsequent priority groups.
2. GM’s January 2018 Third Inconsequentiality Petition
GM’s original August 2017 Extension Request included GMT900 Vehicles in Priority Groups Six, Seven, and Eight, then the only GMT900 Vehicles covered by one of GM’s Petitions. In January 2018, GM filed its Third Inconsequentiality Petition, which covered Priority Group Nine vehicles. Under the ACRO, these vehicles would have been scheduled to launch on June 30, 2018.
1 3. Unforeseen ZF Supply Delays
Under its contracts with GM, ZF committed to supply GM with replacement inflators in the following volumes: (i) 900,000 in 2018; (ii) 1,095,000 in 2019; and (iii) 1,525,000 in 2020. Citing supply constraints, ZF has been unable, thus far, to supply GM with replacement inflators at the contracted rate of 900,000 parts-per-year that GM paid for under its capacity reservation and supply agreements with ZF. Over the last few months, ZF has not met GM’s supply releases and informed GM that it was unable to supply more than approximately 50,000 replacement inflators per month.
GM is actively working with ZF to increase this production rate. On June 20, 2018, at GM’s insistence, ZF committed to increase production of replacement inflators, but not to the extent required to supply GM with the promised 900,000 replacement inflators in 2018. Moreover, ZF has indicated to GM that it will backload 2019 replacement inflator shipments to the end of 2019, further disrupting GM’s near-term capacity to build a bank of replacement parts and replenish that bank if a launch occurs. Although ZF’s unexpected production shortfalls have delayed GM’s progress in assembling its bank of replacement inflators, GM has still amassed a bank of approximately 486,000 replacement inflators as of June 21, 2018, and expects to have 900,000 by the end of 2018.
4. GM’s Amended Request For Relief
To facilitate an orderly launch and avoid part shortfalls, GM’s revised launch schedule, attached as Exhibit B,1 divides the 2.5 million GMT900 Vehicles in Priority Group 6 into three tranches: (i) Tranche A, containing 2007-2008 Zone A vehicles; (ii) Tranche B, containing 2009 2011 Zone A vehicles; and (iii) Tranche C, containing 2007-2008 Zone B vehicles. Because GM’s three Petitions remain pending, GM’s proposed launch dates are calculated from the effective date of a final order denying the Petitions (a “Final Order”).
After the Final Order, GM’s proposed launch schedule provides for a 120-day ramp-up period, which will allow GM to:
• notify the approximately 1 million owners of GMT900 Vehicles in Priority Group Six Tranche A (owner notification for each subsequent launch will commence at the start of its corresponding launch date);
• secure sufficient hazardous material transportation and logistics support to transport large volumes of replacement inflators from GM’s central warehouse in Pontiac, Michigan to GM dealers nationwide; and
1 GM’s revised launch schedule is based on GM’s current replacement inflator bank and ZF’s most recent representations regarding its capacity commitment to supply GM with replacement inflators. The launch schedule is subject to change as GM continues to build its bank of replacement inflators and work with ZF on increasing its production rate. 2
ad1ninistrative ad1ninistrative
supersede supersede
Brief; Brief;
periodic periodic
which which
Please Please
• •
• •
In In
• •
• •
Supply Supply
or or
support support
prejudice prejudice
collectively collectively
record record
rigorously rigorously
contact contact
Vehicles. Vehicles.
shortages, shortages,
resources resources
and and
evidence evidence
preserve preserve Modifying Modifying
at at
Granting Granting
by by
the the
Reports. Reports.
this this
mil!ion mil!ion
GM GM
addition addition
GMT900 GMT900
prepare prepare
Reports, Reports,
risk risk
unanticipated unanticipated
of of
inflators inflators
in in
process, process,
and and
regular updates regular updates
of
this this
of
replace1nent replace1nent
1ne 1ne
any any
dealers dealers
to to
the the
ZF ZF
rupture. rupture.
that that
to to
GM's GM's
the the
See See
de1nonstrate de1nonstrate
and and tested
and and
Vehicles, Vehicles, the the
request, request,
three three
replacing replacing
if if
of of
other other
pending pending
have have
in in
GM GM
GM GM
ACRO ACRO
you you
launch launch
ACRO's ACRO's
the the
permit permit
the the
conduct conduct to
Inconsequentiality Inconsequentiality
request request
engineering engineering
been been
inflators inflators
has has
has has
positions positions
GMT900 GMT900
have have
GM GM
inflators inflators
the the
Petitions. Petitions.
analyzed analyzed
involves involves dates dates
~~ ~~
establishes establishes
the the
kept kept
supplied supplied
that: that:
working_ working_
relies relies
33-34. 33-34.
airbag airbag
orderly orderly
any any
will will
further further
a a
for for
in in
NHTSA NHTSA
relatively relatively
taken, taken,
for for
Vehicles, Vehicles,
questions. questions.
these these
not not
on on
challenges, challenges,
the the
for for
electrically electrically
inflator. inflator.
in in
3 3
use use
diligently diligently
Vice Vice
Maryann Maryann
General General
Sincerely, Sincerely,
?lbr-~~ ?lbr-~~
that that
its its
launch launch
prioritization prioritization
GMT900 GMT900
its its
risk risk
adversely adversely
arguments arguments
priority priority
as as
Petitions, Petitions,
original original
apprised apprised
the the
Petitions, Petitions,
complex complex
President, President,
a a
of of
if if
potential potential
inflators inflators
Motors Motors
ultimately ultimately
Nothing Nothing
ruptW'e ruptW'e
phasing, phasing,
L. L.
and and
GM GM
groups groups
bypassing bypassing
Vehicles Vehicles
Combs Combs
August August
impact impact
and and
made, made,
of of
repair repair
with with
August August
and and
of of
Global Global
LLC LLC
remedy remedy
its its
in in
as as
August August
limited limited
in in
that, that,
the the
urgency urgency
prevent prevent
ZF ZF
required. required.
progress progress
the the
or or
procedure-which, procedure-which,
consu1ners. consu1ners.
2017 2017
in in
this this
a a
2017 2017
GMT900 GMT900
evidence evidence
Vehicle Vehicle
the the
have have
to to
inflators inflators
cpmponent. cpmponent.
seat-position seat-position
25, 25,
production production
request request
date, date,
Extension Extension
manner manner
to to
Supplemental Supplemental
unanticipated unanticipated
through through
built built
2017 2017
Originally Originally
prepare prepare
Safety Safety
have have
presented presented
Vehicles Vehicles
in in
The The
is is
requested requested
nearly nearly
Supplemental Supplemental
the the
Throughout Throughout
Request, Request,
intended intended
not not
and and
the the
to to
switch switch
facts facts
GMT900 GMT900
for for
delayed delayed
been been
replace replace
are are
Supply Supply
supply supply
half-a
in in
Brief, Brief,
many many
parts parts
will will
and and
the the
not not
as as
to to
its its in in EXHIBIT A UNITED STATES DEPARTMENT OF TRANSPORTATION NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
In re:
Docket No. NHTSA-2015-0055 Coordinated Remedy Program Proceeding
DECLARATION OF MARYANN COMBS IN SUPPORT OF GENERAL MOTORS LLC’S AMENDED REQUEST TO MODIFY CERTAIN SUFFICIENT SUPPLY AND REMEDY LAUNCH DEADLINES UNDER PARAGRAPH 39 OF THE THIRD AMENDMENT TO THE COORDINATED REMEDY ORDER
Maryann Combs, pursuant to 28 U.S.C. § 1746, hereby declares as follows:
1. I am the Vice President of Global Vehicle Safety for General Motors LLC (“GM”), and I am authorized to submit this Declaration on GM’s behalf.
2. I submit this Declaration under paragraph 39 of the Third Amendment to the
Coordinated Remedy Order in the above-captioned proceeding and in support of GM’s Amended
Request to Modify Certain Sufficient Supply and Launch Deadlines under Paragraph 39 of the
Third Amendment to the Coordinated Remedy Order (the “Request”).
3. GM will promptly supplement the Request if GM becomes aware of any
information that contradicts the statements in the Request, and will continue to keep NHTSA
informed on the status of its efforts to produce replacement inflators for the GMT900 Vehicles.
4. The contents of the Request are complete and accurate to the best of my knowledge,
information, and belief.
June28, June28,
I I
2018. 2018.
declare declare
under under
penalty penalty
of of
perjury perjury
that that
the the
foregoing foregoing
Maryann Maryann
General General
Vice Vice
~a<~ ~a<~
President, President,
_Motors _Motors
L. L.
is is
true true
Combs Combs
Global Global
LLC LLC
and and
correct. correct.
Vehicle Vehicle
Executed Executed
Safety Safety on on EXHIBIT B EXHIBIT B Summary of Requested Relief
Current ACRO Requested ACRO Zone NHTSA No. MY Models Priority Group Launch Deadline Launch Deadline
Cadillac: Escalade, Escalade ESV, Escalade EXT 120 days after Zone A 16V381 2007-2008 Chevrolet: Avalanche, Silverado 1500, 6 (Tranche A) 9/30/2017 Final Order Suburban, Tahoe, GMC: Sierra 1500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT Chevrolet: Avalanche, Silverado 1500, 9 months after Zone A 16V381 2009-2011 6 (Tranche B) 9/30/2017 Silverado 2500/3500, Suburban, Tahoe, PG6 Tranche A* GMC: Sierra 1500, Sierra 2500/3500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT 9 months after Zone B 16V383 2007-2008 Chevrolet: Avalanche, Silverado 1500, 6 (Tranche C) 9/30/2017 PG6 Tranche B* Suburban, Tahoe GMC: Sierra 1500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT Chevrolet: Avalanche, Silverado 1500, 90 days after PG6 Zone A 17V010 2012 7 12/31/2017 Silverado 2500/3500, Suburban, Tahoe Tranche C* GMC: Sierra 1500, Sierra 2500/3500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT Chevrolet: Avalanche, Silverado 1500, 90 days after Zone B 17V019 2009 8 3/31/2018 Silverado 2500/3500, Suburban, Tahoe PG7* GMC: Sierra 1500, Sierra 2500/3500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT 90 days after Zone C 17V021 2007-2008 Chevrolet: Avalanche, Silverado 1500, 8 3/31/2018 PG7* Suburban, Tahoe GMC: Sierra 1500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT Chevrolet: Avalanche, Silverado 1500, 90 days after Zone A 18V027 2013 9 6/30/2018 Silverado 2500/3500, Suburban, Tahoe PG8* GMC: Sierra 1500, Sierra 2500/3500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT Chevrolet: Avalanche, Silverado 1500, 90 days after Zone B 18V028 2010 9 6/30/2018 Silverado 2500/3500, Suburban, Tahoe PG8* GMC: Sierra 1500, Sierra 2500/3500, Yukon, Yukon XL
Cadillac: Escalade, Escalade ESV, Escalade EXT Chevrolet: Avalanche, Silverado 1500, 90 days after Zone C 18V029 2009 9 6/30/2018 Silverado 2500/3500, Suburban, Tahoe PG8* GMC: Sierra 1500, Sierra 2500/3500, Yukon, Yukon XL
*Based on most recent ZF representations regarding its capacity commitment to supply GM with replacement inflators